State attorneys accuse Moroun of stalling tactics over bridge project

A rendering of the planned Gordie Howe International Bridge from Detroit to Windsor.

Gov. Rick Snyder's administration has ramped up a war of words with billionaire transportation mogul Manuel "Matty" Moroun, accusing the Ambassador Bridge owner of delaying construction of the Gordie Howe International Bridge "to preserve his monopoly" on truck traffic at the Detroit and Windsor border crossing.

Six Moroun companies sued the Snyder administration in late December in a bid to stop the Michigan Department of Transportation from condemning Moroun-owned parcels that sit in the pathway of the long-planned publicly owned bridge in southwest Detroit's Delray neighborhood.

The lawsuit is the latest in a string of legal actions Moroun's companies have taken to fight the State of Michigan and Canadian government over construction of a bridge that would compete for traffic with the aging 88-year-old Ambassador Bridge.

"Moroun's strategy in filing this action is clear – each day that he can stall the (new bridge) is a day free from competition from the project and, therefore, to his financial advantage," state attorneys wrote in a filing Monday with the Michigan Court of Claims.

The new Moroun lawsuit claims the Snyder administration has illegally usurped the Legislature's power to approve the construction of an international bridge and appropriate funding for the use of eminent domain to take privately owned land for public infrastructure. MDOT is being reimbursed by the Canadian government, which has pledged to finance the entire project.

The expedited hearing is needed as early as Feb. 20, state attorneys argued, because the bridge project "is now at a crucial juncture, as private companies are actively preparing their bids to construct and operate" the bridge.

"Any delay in acquiring the necessary property, including (Moroun's land), could delay construction of the (bridge), depriving the public of the necessary border-crossing capacity the (bridge) will provide," the state attorneys wrote. "Moreover, such a delay could seriously complicate the bidding process and potentially cost millions of dollars."

Mike Cox, a Livonia attorney representing Moroun, questioned Tuesday how the lawsuit could delay the bridge project when the Windsor-Detroit Bridge Authority has said it won't award the contracts to build the span until mid-2018.

"Putting aside our right to protect our property rights, how can we delay a bridge that has not even been designed yet and will not be for another year and a half?" asked Cox, a former Michigan attorney general.

Moroun's Detroit International Bridge Co., Central Transport LLC, Crown Enterprises Inc., Riverview-Trenton Railroad Co., CE Detroit LLC and DIBDetroit LLC all own parcels in Delray that are in the path of the bridge's landing and customs plaza that will be linked to I-75.

One of the more prominent parcels of land is at Moroun's Yellow Transportation Inc. trucking terminal at 7701 W. Jefferson Ave., which is owned by the Riverview-Trenton Railroad Co.

The state's lawsuit says Moroun began buying the parcels of land in Delray in 2004 "thereby making it necessary for MDOT to someday condemn his properties to build" the bridge.

"Moroun's strategy was simple: by purchasing properties necessary for the new bridge, he garnered leverage against MDOT and the land-acquisition process," the state attorneys wrote in Monday's filing. "At the very least, he gained the ability to slow down the project by fighting the condemnation. It was obviously Moroun's plan to inject himself into the (Gordie Howe International Bridge) land-acquisition process so that he could further his strategy of delay."

In December, MDOT submitted "good faith offers" to buy the Moroun-owned parcels and gave the companies a month to respond before the state agency would file a condemnation lawsuit in Wayne County Circuit Court.

Moroun also is fighting MDOT's condemnation proceedings in Wayne County Circuit Court.

The state attorneys argued Monday that the Court of Claims needs to rule on Moroun's lawsuit to give the Wayne County Circuit Court guidance on how to proceed on 16 different lawsuits challenging MDOT's attempt to take land through eminent domain for the bridge project.

The state's response to Moroun's lawsuit was filed Monday by three Special Assistant Attorneys General Mark Zausmer, Mischa Boardman and Devin Sullivan, who are private attorneys at the Farmington Hills law firm of Zausmer, August & Caldwell, P.C.